Here’s what most ecommerce sellers get wrong: they focus on their company’s total profit while ignoring whether each individual product is actually making them money. You might think your store is profitable — and it might be overall — while carrying several SKUs that are actively losing money on every unit sold.

Breaking down your SKUs means calculating true unit economics for each product: COGS, platform fees, fulfillment, advertising attribution, returns. When you see those numbers by SKU, you can make real decisions. Cut the losers. Double down on the winners. Speed up your cash cycle by eliminating the products that tie up inventory capital without generating profit.